The World Bank Report No: ISR9207 Implementation Status & Results Madagascar Integrated Growth Poles (P083351) Public Disclosure Copy Operation Name: Integrated Growth Poles (P083351) Project Stage: Implementation Seq.No: 17 Status: ARCHIVED Archive Date: 02-Jan-2013 Country: Madagascar Approval FY: 2006 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 12-Jul-2005 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date Last Archived ISR Date 21-Jun-2012 Effectiveness Date 28-Sep-2005 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall purpose of the proposed project is to help provide the adequate business environment to stimulate and lead economic growth in three selected regional poles. The specific objectives are to assist the GOM to: (i) construct and rehabilitate critical infrastructure essential for sustained economic activity in the tourism, manufacturing, agribusiness and mining sectors; (ii) put in place appropriate incentive measures to achieve rapid growth; (iii) develop the instruments to ensure equitable, sustainable growth; and (iv) strengthen the capacity of local authorities to formulate, prepare, implement, and manage medium- and long-term integrated of future regional development projects Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component A: Strengthening the business environment 26.25 Cancelled component 0.00 Component C: Tourism led growth in Nosy Be 49.20 Public Disclosure Copy Component D: Mining and Tourism led growth in Tolagnaro (Fort Dauphin) 68.20 Component E: Program and Project Implementation, Evaluation and Monitoring 19.35 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Page 1 of 7 The World Bank Report No: ISR9207 An Implementation Support Mission for the Integrated Growth Poles Project (IG2P) was conducted in Madagascar on October 15-November 2, 2012. The main objective of the mission was to take stock of implementation progress following the newly completed level 1 restructuring of the Project. Overall Implementation Progress and Progress towards Achievement of the Development Objectives are both rated Satisfactory. The PIU has performed strongly in 2012 and the Public Disclosure Copy Achievement of the PDO rating has been upgraded from Moderately Satisfactory to Satisfactory. Data for October 31, 2012, reveal that the Project is well on track to achieve its PDO level results indicators. During the first ten months of the year, the number of formal businesses increased by 16% (432 enterprises) and the number of formal jobs increased by 9% (adding 1,088 jobs). The level 1 Project restructuring, which was approved by the Board of Directors on December 4, 2012, included the following main changes: (i) the Project Development Objective (PDO) was amended; (ii) the closing date of the Project was extended from December 31, 2012, to December 31, 2014; (iii) the Antsirabe-Antananarivo growth pole was dropped; (iv) some Project sub-components, associated results indicators and legal covenants were dropped or amended; and (v) funds were reallocated. The restructuring withdrew support for activities that the Project was unable to support under current country circumstances and certain legal covenants as well as activities that required central government policy or legislative reforms that had high reputational risks as a consequence of the crisis. In particular, the revised PDO was streamlined to provide better guidance and enhance results focus, without changing the main objectives of the Project: “to increase business and formal job creation in particular in the mining, tourism and agribusiness sectors in the Nosy Be and Taolagnaro regions.� NPS disbursed US$ 5.0 million in Q3-Q4 FY12; up from US$4.8 million in Q1-Q2 FY12; and US$3.4 million in Q3-Q4 FY11. On October 31, 2012, the commitment and disbursement of Cr.4101 was 100% while the disbursement of Cr.4399 (additional financing) was 23%. Projected disbursement for Q1-Q2 FY13 is US$5.5 million. Locations Country First Administrative Division Location Planned Actual Madagascar Not Entered Fort Dauphin Madagascar Not Entered Nosy Tanihely Madagascar Not Entered Nosy Be Madagascar Not Entered Lakandava Madagascar Not Entered Baie d' Hellville Madagascar Not Entered Fausse Baie des Galions Public Disclosure Copy Madagascar Not Entered Antsirabe Madagascar Not Entered Antsirabe Madagascar Analamanga Antananarivo Madagascar Not Entered Fascene Airport Results Page 2 of 7 The World Bank Report No: ISR9207 Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of businesses registered in the two Number Value 482.00 3432.00 3500.00 Public Disclosure Copy poles Date 01-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Number of formal jobs in the two poles Number Value 2415.00 13062.00 13900.00 Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Direct project beneficiaries Number Value 0.00 205600.00 217300.00 Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Female beneficiaries Percentage Value 0.00 50.60 50.60 Sub Type Supplemental Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Days required to start a business Text Value Capital: 21 Days Capital: 5 Days Capital: 3 Days Regions: >30 Days Regions: 7 Days Regions: 7 Days Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Number of individual recipients of subsidized Number Value 0.00 3108.00 2600.00 BDS services Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Annual sales value of assisted firms in selected Percentage Value 0.00 0.00 15.00 value chains (cum.) Date 15-Dec-2005 31-Oct-2012 31-Dec-2012 Comments Public Disclosure Copy PDO 3.1: EDBM is fully staffed and operational Yes/No Value No Yes Yes Date 15-Dec-2005 31-Oct-2012 31-Dec-2012 Comments PDO 3.2: Adoption of regional development Yes/No Value No Yes Yes plans Date 15-Dec-2005 31-Oct-2012 31-Dec-2012 Comments Page 3 of 7 The World Bank Report No: ISR9207 PDO 4: Adoption by National Assembly of a Yes/No Value No Yes Yes new Investment Law and amended Free Zone Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 law Comments Public Disclosure Copy Component C: 1.1: Number of tourist arrivals Number Value 39376.00 43014.00 76000.00 by air or sea per annum Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Component C: 1.2: Number of formal and Number Value 1386.00 2963.00 3500.00 direct tourism related jobs in Nosy Be Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Component C: 1.3: Increase in hotel rooms Percentage Value 0.00 107.00 105.00 Date 15-Dec-2005 31-Oct-2012 31-Dec-2012 Comments Component C: 2.1: People provided with Number Value 8010.00 47690.00 65800.00 access to “Improved Water Sources� under the Date 15-Dec-2005 31-Oct-2012 31-Dec-2012 project Comments Component C: 2.2: Roads rehabilitated Kilometers Value 0.00 52.50 59.40 Date 15-Dec-2005 31-Oct-2012 31-Dec-2012 Comments Urban Kilometers Value 0.00 12.70 14.60 Sub Type Supplemental Rural Kilometers Value 0.00 39.80 44.80 Sub Type Supplemental Component C: 2.3: Completion of upgrading Yes/No Value No No Yes works of Hellville and Ankify ports Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Public Disclosure Copy Comments Component C: 2.4: Time required to issue a Days Value 50.00 10.00 30.00 construction permit by the municipality of Nosy Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Be Comments Component C: 2.5: Value of additional Percentage Value 0.00 -20.00 125.00 Municipal revenue generated Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Page 4 of 7 The World Bank Report No: ISR9207 Component C: 2.6: Additional generation Megawatt hour Value 0.00 5.10 7.60 capacity installed - conventional (MWh) Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Public Disclosure Copy Component C: 2.7: Existing electricity networks Text Value 0 Km of distribution lines 0 73 rehabilitated Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Constructed Text Value 0 0 46 Sub Type Supplemental Rehabilitated Text Value 0 0 27 Sub Type Supplemental Component C: 2.8: People in urban areas Number Value 25450.00 66180.00 70700.00 provided with access to regular solid waste Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 collection under the project Comments Component D: 1.1: Number of tourist arrivals in Number Value 13011.00 16794.00 30000.00 Taolagnaro per annum Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Component D: 1.2: Number of formal and Number Value 111.00 1793.00 2000.00 direct tourism related jobs in Taolagnaro Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Component D: 1.3: Increase in hotel rooms Percentage Value 0.00 98.00 100.00 Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Component D: 2.1: People provided with Number Value 24635.00 57336.00 63400.00 access to “Improved Water Sources� under the Public Disclosure Copy Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 project Comments Component D: 2.2: Roads rehabilitated Kilometers Value 0.00 91.80 122.80 Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Urban Kilometers Value 0.00 24.80 30.80 Sub Type Supplemental Page 5 of 7 The World Bank Report No: ISR9207 Rural Kilometers Value 0.00 67.00 92.00 Sub Type Supplemental Public Disclosure Copy Component D: 2.3: Time required to issue a Days Value 42.00 25.00 30.00 construction permit by the Municipality of Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Taolagnaro Comments Component D: 2.4: Value of additional Percentage Value 0.00 408.00 575.00 Municipal revenue generated Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Component D: 2.5: Additional generation Megawatt hour Value 0.00 23.70 23.70 capacity installed - conventional (MWh) Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Component D: 2.6: Existing electricity networks Text Value 0 57.8 99 rehabilitated Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Comments Constructed Text Value 0 Km of distribution lines 0 Km of distribution lines 12 Km of distribution lines Sub Type Supplemental Rehabilitated Text Value 0 Km of distribution lines 57.8 Km of distribution lines 87 Km of distribution lines Sub Type Supplemental Component D: 2.7: People in urban areas Number Value 13500.00 33679.00 61320.00 provided with access to regular solid waste Date 31-Dec-2005 31-Oct-2012 31-Dec-2014 collection under the project Comments Component D: 3: Volume of traffic handled by Text Value 0 ('000 tonnes) 495 ('000 tonnes) 750 ('000 tonnes) Ehoala Port Public Disclosure Copy Date 15-Dec-2005 31-Oct-2012 Comments Component D: 4: Number of formal jobs in Number Value 904.00 2884.00 3100.00 mining, construction, agribusiness and in Date 15-Dec-2005 31-Oct-2012 31-Dec-2014 Ehoala Park/Port Comments Data on Financial Performance (as of 05-Dec-2012) Financial Agreement(s) Key Dates Page 6 of 7 The World Bank Report No: ISR9207 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P083351 IDA-41010 Closed 12-Jul-2005 13-Jul-2005 28-Sep-2005 31-Dec-2010 31-Oct-2012 P083351 IDA-43990 Effective 17-Apr-2008 08-May-2008 06-Aug-2008 31-Dec-2012 31-Dec-2012 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P083351 IDA-41010 Closed XDR 85.90 82.65 3.25 82.65 0.00 100.00 P083351 IDA-43990 Effective XDR 25.00 25.00 0.00 6.32 18.68 25.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy None Restructuring History RVP Approved on 13-Dec-2007, Level two Approved on 14-Nov-2011, Level two Approved on 21-Dec-2011 Related Projects P110405-MG - Integrated Growth Poles Additional Financing Credit Page 7 of 7